TRUSTED
SECURE
ASSET BACKED
CRYPTO CURRENCY
Whitepaper
ii
TABLE OF CONTENTS
INTRODUCTION......................................................................................................................................................................................................... 3
DISCLAIMER .................................................................................................................................................................................................................. 3
RISK STATEMENT ..................................................................................................................................................................................................... 3
RISK WARNING: ....................................................................................................................................................................................................... 3
ABSTRACT ..................................................................................................................................................................................................................... 4
KEY FUNCTIONALITY OF CUBEBUCKS .................................................................................................................................................. 4
WHAT IS CRYPTOCURRENCY? .................................................................................................................................................................... 5
WHAT IS CUBEBUCKS? ...................................................................................................................................................................................... 5
WHAT IS PAYMENT SERVICE DIRECTIVE 2 (PSD2)? ................................................................................................................. 5
CURRENT PROCESSES ....................................................................................................................................................................................... 6
CUBEBUCKS PROCESS ....................................................................................................................................................................................... 6
APPLICATION .............................................................................................................................................................................................................. 7
CUBEBUCKS UNIQUE FEATURES ............................................................................................................................................................... 8
CUBEBUCKS WALLET .......................................................................................................................................................................................... 9
WALLET - TECHNICAL INFORMATION .................................................................................................................................................. 9
ON-RAMP PLATFORM ....................................................................................................................................................................................... 11
ASSET-BACKED CURRENCY ........................................................................................................................................................................... 12
FINANCIAL BENEFITS ........................................................................................................................................................................................... 12
ASSET ALLOCATION .......................................................................................................................................................................................... 12
APPLICATION – FOCUS ON ASSET ALLOCATION FUNCTION ........................................................................................ 13
CROSS-CHAIN EXCHANGE ........................................................................................................................................................................... 14
PROJECT DEVELOPMENT .............................................................................................................................................................................. 15
PROJECT DEVELOPMENT ............................................................................................................................................................................. 16
DEVELOPMENT FRAMEWORK ................................................................................................................................................................. 17
ICO – COIN RELEASE .......................................................................................................................................................................................... 18
ICO ROUNDS ............................................................................................................................................................................................................ 19
ROUND 1 TO 4 – ICO OFFER ..................................................................................................................................................................... 20
USE OF FUNDS FOR BUDGET ALLOCATION ARE SET OUT BELOW: .................................................................... 21
USE OF FUNDS – DEVELOPMENT FUND COMPONENT: .................................................................................................... 21
ROADMAP ................................................................................................................................................................................................................. 22
TEAM .............................................................................................................................................................................................................................. 23
LEGAL GOVERNANCE AND AUDIT COMPLIANCE .................................................................................................................. 24
DISCLOSURE ............................................................................................................................................................................................................ 25
LEGAL GOVERNANCE .................................................................................................................................................................................... 30
COMPLIANCE ............................................................................................................................................................................................................ 31
3
INTRODUCTION
Thank you for receiving the CubeBucks whitepaper. Below you will read about the solution we
propose for the next generation of blockchain currency system. CubeBucks is introducing a
new model of using blockchain for international settlement of payments, store of value and
digital cash ability for micropayments.
We are the only Crypto currency that is provided with a promise that all coins issued will be
bought back by the company in the event of no demand exist on the open market trading
platforms.
DISCLAIMER
CubeBucks is not issued or governed by any government or sovereign jurisdiction. It is a digital
currency based on blockchain technology. This is not an offer for security, equity in CubeBucks,
offer for shares in the company or a promise of returns.
You are entering an agreement to buy a unit of our currency that will be used to pay for goods
or services online or to transact with. The only limited guarantee when buying CubeBucks is
provided by the company in the form of the funds allocated to the asset guarantee fund that
will be available on the wallet at the end of phase 4 of the development plan.
RISK STATEMENT
You are reading the offer to pre-purchase a unit of currency that will be developed as a
crypto-currency on blockchain for the purpose of providing a crypto coin that is backed by
community allocated assets. The security of the asset-backed coin is that the company are
the guaranteed buyer of all coins that remain unsold on the coin trading platform, and will be
settled on demand.
RISK WARNING:
You have to ensure you follow the exact buying instructions from the e-mail you will receive
when buying your coins. Round 0 subscribers will not receive their coins at this time and will be
provided with a promissory note that will be redeemable for coins after April 2018.
4
ABSTRACT
CubeBucks is an innovative asset-backed cryptocurrency that addresses some of the key
concerns with cryptocurrencies that are regarded as inefficient, unreliable and risky. Some of
these failure points include price volatility, extended transaction processing times, market
manipulation, the inability to transact low value payments, and the absence of any asset
backing to justify the price of these cryptocurrencies.
The CubeBucks micropayment solution is conceptualised to address these issues and
introduce a currency backed by assets as a safe store of value mechanism for transacting.
CubeBucks is not based on current widespread generic blockchain protocol systems that rely
on mining for continued coin release. Our approach is built on a secure Hybrid Flex, Multi-Sig,
partially distributed ledger technology (spreading control of coins between multiple key
holders, while maintaining ledger integrity and transaction processing across several nodes).
This revolutionary adoption and restructure of core systems offer other ways to achieve the
desired incentive structure and influence behaviour. The CubeBucks ledger platform offers
transactional rules for how value is transferred and stored in this blockchain solution. Every
CubeBucks coin comes with the promise of a guaranteed buyback by the company
according to the conditions of our limited guarantee. The global demand for a safe secure
store of value and stable universal currency is the purpose for the creation of CubeBucks, and
we are ready for widespread adoption.
KEY FUNCTIONALITY OF CUBEBUCKS
Micropayments – The ability to do low-value transactions
Micropayments are defined as transactions online for digital content at values less than
$100. The transaction value is mostly in the region of $1 and $25. Most people are online
through their mobile device or computer and do not have the financial service products
needed to be able to transact online.
Payments – The ability to transact in a familiar way
CubeBucks aim to solve the access problem with a simple
pre-paid model to allow people to load a value on their
wallet that will be used to pay for online content services.
Wallet holder will be able to make seamless payments to
vendors on the platform that is instant. The coin design is
also made on a familiar model that reflect 100 cents per
unit of coin. Establishing this blockchain currency as a
unique, user-friendly currency.
A secured store of value
Our digital coin is asset-backed and offers secure value store and transfer ability. All coins
entering the system are not generated by mining operations. They are ‘generated’ on a
structured coin release model that will see a block released on demand when the market
supply of coins falls below a threshold to serve the demand for new funds to enter the
ecosystem. All new coin releases will result in the sale proceeds to be allocated to the asset
register as determined by market consensus. Each wallet holder will decide the weight
allocation of his value stored in the asset pool. Allowing each person control over the asset
allocation underwriting the value of their coins.
CubeBucks –
the asset backed
crypto currency
for the future
5
WHAT IS CRYPTOCURRENCY?
Cryptocurrency is a digital monetary unit, which
is used as a medium of exchange that utilizes
public key cryptography to secure and
perform anti-counterfeiting functions
embedded within the currency unit.
Public and private keys are used as entries to
form a public ledger, called a "blockchain," in
order to prevent simultaneous ownership, or
spending, of a monetary unit by one or more
individuals.
WHAT IS CUBEBUCKS?
CubeBucks is a secure, safe asset-backed
cryptocurrency build on a multi-dimensional blockchain
as a partially distributed ledger that is used for real-time
payments.
The underlying value of CubeBucks is established on a risk
profile based user-defined allocation of a portfolio of
asset classes. The CubeBucks wallet offers innovative
features like Cross-Chain exchange for all forms of crypto
currencies, micro-payments platform for internet
transactions and person to person digital cash payments.
WHAT IS PAYMENT SERVICE DIRECTIVE 2 (PSD2)?
Cubebucks designed the system for full compliance to PSD2 by phase 3 of our
development plan. Some of these are more relevant to banks than CubeBucks, but we
elected comply with the best practice in the Fintech industry by including the applicable
functions.
An API function through which an end user can grant access to their data
An API function to retrieve and end user’s basic account information
Automated API unit tests to ensure the correctness and robustness
A development environment with test data
A deployment process to make those functions available
API documentation, developer SDKs, code samples, and tutorials
A process through which third parties can apply to get an API Key
An API authentication process which verifies the client application
API load balancing to ensure that the API scales effectively with unpredictable
demand
Analytics, audit trails, and logging to understand how the new APIs are used in practice
General Data Protection Regulation (GDPR) considerations
6
CURRENT PROCESSES
CUBEBUCKS PROCESS
In the current environment where banking
and payments exists, all transactions rely
on intermediaries and financial service
providers, which translate into added
costs, extended processing times, and
lack of control.
These payments are also controlled in
various ways including restrictions on
payments across borders, foreign
exchange rules, limits on withdrawals,
prescribed transaction value sizes, and
the inability to transact outside banking
hours for some products and services.
Multiple currencies and jurisdictions also
create a complex environment that
reinforces trade barriers.
People and business have surrendered
control over their money to the banking
industry.
At CubeBucks we believe that money must serve
the primary purpose that it was intended for,
which are a medium of exchange, a unit of
account and a store of value.
The solution by Cubebucks eliminates the need
for using banking products. We facilitate
payment directly between parties, commonly
known as Peer-to-Peer (P2P) payment. Your
money resides in your wallet, and when you
effect payment it is instantaneous similar to
giving cash.
As a crypto currency which is not linked to a
sovereign country, it can facilitate instant,
frictionless payments even across borders, with
very low fees, enable low value transactions,
and at very fast processing times
CubeBucks provides a means of exchange of
value in systems where trust in central authority
has been lost. Digital and analogue money up
to now failed to provide a globally appealing
and efficient means of payment
7
APPLICATION
8
CUBEBUCKS UNIQUE FEATURES
Asset-Backed Wallet platform
This is a PSD2 Compliant Multi-Currency Store of Value, and the
network value of all assets held on the network make up the
guarantee/price ratio. All new coins issued will result in a
percentage of the value being allocated to the Asset platform.
On-Ramp platform
This is a reward based model that will compensate the vendor
for acting as exchange for the digitisation of funds to the
CubeBucks platform. The retailer or individual holding digitized
funds will receive a percentage reward on the value of the
funds exchanged,
Cross-chain Exchange platform
The purpose of this platform is to offer the means to trade and
transfer value store from one wallet to another. The seamless
backend integration with platforms like Blockchain.info
9
CUBEBUCKS WALLET
Easy to use smartphone apps such as Apple, Android, Microsoft mobile OS
Basic menu functions with subfunctions
Simple to use familiar financial interface
Build on secure encrypted hybrid-flex blockchain ledger platform
Multi-level data encryption and authentication for extended security
Easy transfer between various digital value platforms and vanilla cash in any market.
Trade in $ £ ʀ Υ Є (multi-currency)
Cross-chain blockchain currency exchange between CubeBucks, Bitcoin, Bitcoin Cash,
Ethereum or any other linked ERC20 based coin
WALLET - TECHNICAL INFORMATION
The CubeBucks wallet offers advancement in the usefulness of the limited functions offered by
most crypto-wallet solutions in the market today.
The application is free to download from both the Apple and Android
Stores (available in April 2018).
The wallet generates a secret hash-key that is part of the security
solution that makes up the entire encryption module. The installation
will also ask for the second pin- code that is a familiar authentication
method and easy to remember. This process is developed for full
PSD2 compliance.
The installation process generates the account number; this unique
feature uses a familiar bank account number structure that has been
linked to a hash-code for the wallet and the CubeBucks Blockchain.
The 10-digit wallet account number may be shared with others to send or receive payments.
The mobile number may also be linked to the handset and the wallet account number.
As soon as the process is complete the user will be able to fund the wallet from our various
options to load funds, including using the prepay option under the On-Ramp platform.
CubeBucks – the
asset backed crypto
currency for the
future
10
WALLET FUNCTIONALITY
The wallet offers functions to load the prepaid keys and to make P2P payments using either
the 10-digit account number or the mobile number of the receiving party. Receivers without
an account will be provided with a link to install the CubeBucks wallet on their device.
Our wallet is more than just a payment platform, should the person wish to save their funds for
future use the wallet offers one of the most innovative methods of allocating funds to assets
based on the risk profile of the person that owns the wallet.
For importers and exporters, we offer an instant global settlement and custodian option, using
a unique equation that block funds for markets of contract based terms for release, as defined
by the trading parties.
For vendors selling digital content items, we offer access to the underbanked¹ and market that
enable them to purchase using our uniform coin for the transaction.
The wallet is a safe, secure and convenient method of interacting with your money.
APPLICATION MENU FUNCTIONS
A log and report of all transactions is available under reports.
Cash-out to your usual bank options will be available later, that will allow you to receive your
value in your wallet in your local currency and bank account.
Our blockchain-node-module is built into every wallet and when a user is actively using his
wallet; his phone will be acting as a trusted authentication node² that will confirm transactions
on the CubeBucks blockchain.
Low data latency ensures all active nodes will confirm all transactions with a centrally
administered backup node that will remain active on the blockchain until a stable 10,000
active node volumes are established.
1. Underbanked – People with bank accounts but no credit card
or other sophisticated banking products.
Our reference here is specifically towards people that are unable
to transact online due to low credit score or other limitation
preventing them from gaining access to a bank credit card.
2. Node – Any device connected to a control node on the
Cubebucks Network.
This wallet and the CubeBucks currency is
the first global internet money that every
person would want to use.
11
ON-RAMP PLATFORM
Cryptocurrency is the most exciting subject on the internet at this moment. Many
people are interested in buying in; however, remain cautious in entering the market.
One of several obstacles perceived by many is the limiting cost factor of the current
price of the leading blockchain currencies. People relate to familiar terms and feel
that they need at least one unit of a coin to be able to relate to it.
The ability to transform your money in your local economy to a digital form for global
transacting or to just store your value for future use, remains one of the biggest
obstacles for general universal adoption. CubeBucks will be developing a solution on
our platform to solve this problem, and we called it On-Ramp.
When developing the solution, we defined two criteria for how we aim to solve this
problem -
• it has to be simple to use, and
• it has to make use of familiar methods known by most people
We solved these through our partnerships with global payment processors and Point
of Sale (POS) terminal system providers. Their existing network and connected
environment provide the ideal infrastructure to be able to offer unrestricted universal
access.
Any retailer accepting bank card payment has the ability to issue a token receipt. The
partnerships with key service providers allow these terminals to issue a token that
would be redeemable on our wallet platform. The platform essentially operates on
the same method as pre-paid airtime does on the mobile telephone network.
Once your funds are loaded you are free to utilise the full functionality of the wallet
system.
Any person having a wallet and value in that wallet may act as an On-Ramp
processor. The person to person transfer option on the wallet is the method of
fulfilment. With this, any person holding qb¹ in his wallet will be able to sell that value
for cash to another party.
Merchants with terminals already have the infrastructure in place to be able to
provide this function. The benefits of being an access point to the digital currency
market will drive more traffic to their store and increase their sales. All sales over the
terminal network will be exposed to the usual banking and transaction processing
fees. These are charged and deducted. In the future, the financial institutions may
allow lower cost over these platforms, but for now, we are subject to the terms of use
dictated by the system.
1. qb – pronounced “quebee” is the representation of a single unit of
the CubeBucks currency. Example qb1 = US$0.30
On-Ramp – Easy access to all digital currencies
On-Ramp
Universal access to
digital currencies
12
ASSET-BACKED CURRENCY
FINANCIAL BENEFITS
Value stored in the wallet provides the owner of the value the
option to select an allocation of the underlying assets backing
their coin.
This provides the end user with the freedom to determine his
own risk profile based allocation and reward earned over a
period of time the assets are held
Period of Time of holding in an asset category = share of fund
growth per unit held.
Returns generated from investment activity of the various asset classes will result in new coins
to be issued as a reward for the holders of coins in that asset class. The volume of coins will be
determined by actual returns generated and distributed to value holders with coins allocated
to the relevant portfolio for the period of their holdings.
ASSET ALLOCATION
The CubeBucks Asset-Backed model was developed
to provide security to holders in the value of our coin.
Our Promise to pay extends to the valuation of assets
of the initial coin sales proceeds being spread among
4 categories of the investment portfolio.
This allocation of funds allows the currency to be
valued live on the blockchain platform according to
the joint asset allocation of the group of coin holders.
Although the initial asset allocation will be determined
by the founder team and their advisors, the further
asset allocation will be determined by consensus
selection of each wallet holders profile allocation of
the funds in his wallet to a specific asset resource.
Funds and fund managers will have mandated
investment portfolios managed by the Network
Allocation Consensus Model¹.
A Buffer Marginal Exchange Platform² will facilitate
movement selections by coin holders to allow live
reporting of the asset allocation consensus on the
network, and allow for stable allocation to fund under
management
1. Network Allocation Consensus Model – The ability by wallet holders
to allocate their funds on their wallet to an asset class directly within
the wallet
2. Buffer Marginal Exchange Platform – The financial controller on the
platform that manages the asset allocation movements by wallet
holders while maintaining asset class commitments with fund
managers.
Cash & Equity
Fixed Assets
Crypto Currencies
Commodities
13
APPLICATION – FOCUS ON ASSET ALLOCATION FUNCTION
Cryptocurrencies are all related in some way to either the original Bitcoin protocol or
the Ethereum protocol.
The inherent flaws with both these models are that their only true value is determined
by the network. This means it is exposed to many elements including bad practices
like price manipulation, radical value fluctuations and zero protection from a fallout
event.
The CubeBucks model was developed specifically to eliminate these and other risk
factors by a team of conservative business people. We believe the blockchain has
vast financial potential as a technology. We also believe the financial markets offer
the best solution for protecting capital values over long periods.
Other than the technological revolution in the application of the blockchain by
CubeBucks we extended the ledger to include a promise or guarantee to every coin
holder.
Every CubeBucks coin (qb) that remain unsold on our platform will be settled on
demand from the assets being held in the asset portfolio for the maximum ratio
reflected on the Nett Asset value per coin on the control panel in the wallet
application.
This guarantee is underwritten by the funds allocated to the portfolio of regulated
assets and crypto assets, available after the completion of ICO Round 4.
Within the wallet, we have developed an algorithm that is able to calculate a risk
profile of for every wallet holder related to the individual's own risk appetite. Every
person that wishes to determine their risk profile will be able to answer 8 pre-defined
questions that will determine their risk profile. This is a voluntary process and you may
proceed directly to the allocation screen if you are comfortable to make your own
selection and do not need a risk profile.
We have identified 4 asset categories that you may select for the allocation of your
funds within your wallet. Your Asset Allocation selected will influence the guaranteed
valuation of your funds according to the valuation of the underlying assets, and the
portfolio reward you receive in the form of CubeBucks coins.
Fund options:
Cash & Equity | Fixed Assets |Crypto Currencies |Commodities |
Allocation range:
All clients will be able to select an allocation of 5% to 35% per asset.
The Cryptocurrency asset class on the wallet platform will be restricted to 20% overall
to ensure currency price stability to maintain the Asset ratio for the buyback
guarantee.
14
CROSS-CHAIN EXCHANGE
FREE EXCHANGE PLATFORM
Interexchange ability of the CubeBucks coin as the Base Exchange currency for transferring
between any if the blockchain currencies are achieved on the Cross-Chain platform.
CubeBucks is the redeemable currency that has to be adopted as a trading pair by the
corresponding alternative coin, and using the base cost model would be exchangeable for
another corresponding currency. Retailers and consumers will be able to buy or sell their Virtual
currency on the Cross-Chain Market Engine¹ driven by demand and supply on the global
network of trades.
Crypto coins need a uniform settlement currency to accommodate trade and exchange
between all of them that streamline access to minor coins, banking infrastructure and financial
systems.
The settlement currency for Blockchain will be the legacy of CubeBucks.
1. Cross-Chain Market Engine is the platform on the wallet that allow multiple currencies to be exchanged for
Cubebucks currency (qb) and support multiple currency pairs exchangeable with CubeBucks as settlement currency.
Bi t co in
Other ERC20 Voucher
s
E thereum
A l t -Co ins Banks
15
PROJECT DEVELOPMENT
16
PROJECT DEVELOPMENT
User experience based development framework
The trend in Software development is to deliver projects built around user experience
requirements. Our approach was to ensure our system delivers good performance across
multiple devices and platforms, while maintaining network and data integrity on a secure easy
to use mobile application.
This is achieved using the matrix below as the guiding planning tool, with task-specific
deliverables over a period of time. The skills matrix needed in the development phase is a mix
of C, C++ and Docker specialist working on the core platform. The development will be based
on consensus, a non-computational distributed ledger with all nodes participating in
cryptographically signing and confirmations of transactions.
Our front-end team with Java Script, Html5 and other web expertise will ensure the visible
application layer on the web and mobile devices offer smooth simple user functions on a
secure platform interacting with the back-end system for transactional exchange and
information extraction.
Our creative team will be designing the layers of the graphics that make up the presentation
the users will experience on their device. Each component representing data will be drawn
from a live backend data source to ensure representation of accurate on time information on
the user control panel.
In-app customisation and layout features will in future make the entire wallet program fully
customisable to the taste of the user. Customisation includes background colours, wallet
layout and information graph options.
Our phased approach has the team focussed on the core system that is hosted on a cloud
system; build on redundancy to ensure the continuation of the application in case of site
difficulty.
After completion of the core system, the security module and protocol for account creation
and device encryption will be developed. Our module technical paper has been drafted with
details of the user interactions clearly defined.
The Process from the core system will see improvements of the wallet interface to allow for all
the functionality to work efficiently.
Continued improvements and development will be done with new features being added as
the systems develop over time. User feedback, interactions and experiences will guide our
further development into the future.
17
DEVELOPMENT FRAMEWORK
User Experience (UX)
This point addresses the need to understand who the user is, what their needs are, and what
would make a great experience at each layer of the stack.
1. Data
In the data area, we design how data should flow through the stack to fulfil the user’s needs.
2. Business
Based on the user and data needs, the business decisions that will feed into the business plan
and financial projections will be derived from the input analysis of the impact on the business
model.
3. Technology
The decisions above influence what technology is needed at each layer to deliver the solution.
The Engineering team will be supplied with the information and requirements and they will
present the best technical solutions.
4. Security
It is a fundamental requirement that the program secure each layer of the stack. Evaluate
how each layer could be compromised (including device tampering), with security testing in-
house or with a vendor, and definitions for how to protect the core system from being hacked
from internal or external sources.
Development
Framework
Device Software Platform Communication Application
User Experience
(UX) 2 2 2 2 2
Data 1 3 3 2 3
Business 4 2 2 3 1
Technology 3 3 3 2 1
Security 3 3 3 2 2
18
ICO – COIN RELEASE
.
FUTHER ROUNDS
Block 24 577 to 262 144
Total qb balance 12 163 4
81 600
19
ICO ROUNDS
This round is the pre-offer round. This round is open by invitation only and makes
provision for sales of the first 80 blocks to friends, HNWI, investors and early interested
parties from the website.
The round will release the coins to this closed group with the understanding that all of
the proceeds of Round 0 will be allocated to the development of the project. The
funds will be applied to create the Server infrastructure that will support the coin
release and blockchain core modules.
The 80 initial blocks are equal to 4 096 000 qb coins that will be offered at the 40%
discount from the expected Round 4 public offer. The asset value is expected to be
around $0.50 per unit after completion of Round 4. We are offering this discount to
attract early adopters with patience for being able to trade or utilise the features
offered by the company.
The sales of this round will deliver a promissory note to the purchaser, which will be
redeemable on the CubeBucks wallet when it is launched.
A promissory note, sometimes referred to as a note payable, is a legal instrument (more particularly, a
financial instrument and a debt instrument), in which one party (the maker or issuer) promises in writing
to pay a determinate sum to the other (the payee), either at a fixed or determinable future time
All notes will be redeemable for their value in CubeBucks on the platform when the
Blockchain system is fully operational allowing for coins to be issued and loaded into
our wallet.
ROUND 0
20
ROUND 1 TO 4 – ICO OFFER
Please note that the promise to pay – “Every CubeBucks coin (qb) that remain unsold
on our platform will be settled on demand from the assets being held in the asset
portfolio for the maximum ratio reflected on the Nett Asset value per coin on the
control panel” – Will only be available after completion of Round 4 of the ICO.
Round 1 – This round is the first live round that CubeBucks coins qb will be
released. The milestone for the activation of this round is that the Wallet
platform is available and we are able to load coins on the wallet. The wallet
will have limited usability in that users will be able to transfer coins between each other
on the network, and some limited payments will be possible with vendors willing to
accept the coin as payment.
Round 2 – This round is the second live round that CubeBucks coins qb will be
released. The milestone for the activation of this round is that Round 1 is fully
sold out, the Wallet platform functions for risk profile and asset allocation has
been completed. The wallet will remain limited in usability in that users will be able to
transfer coins between each other on the network, and some limited payments will
be possible with vendors willing to accept the coin as payment.
Round 3 – This round is the third live round that CubeBucks coins qb will be
released. The milestone for the activation of this round is that Round 2 is fully
sold out. The Wallet platform has full functionality including exchange of any
other cryptocurrency with the Cross-Chain Market Engine.
Round 4 – This round is the last defined volume, coin release round, for
CubeBucks coins - qb. The milestone for the activation of this round is that
Round 3 is fully sold out. Assets allocation funds have been contractually committed
and the initial seed fund for each asset has been committed to the administrators.
User allocation to funds will initiate and effect the allocations of assets to investment
funds.
On completion of this round, the asset guarantee initiates.
FURTHER ROUNDS - MARKET OPEN – COIN RELEASE MODEL APPLY BASED ON SUPPLY
AND DEMAND
21
USE OF FUNDS FOR BUDGET ALLOCATION ARE SET OUT BELOW:
All funds received will be processed in the following manner:
Funds received:
USE OF FUNDS – DEVELOPMENT FUND COMPONENT:
Funds
80% Invest
Cash/
Equities
Crypto
Currencies
Commodities Funds
20%
Development
15%
Development
Fund
5%
Team
rewards
22
ROADMAP
Coin sale launch for Round 0
Blocks: 80
Coins – qb: 4 096 000
Price $0.30
Delivery: Promissory Note
Open: 18 December 2017 to 30 January 2018
23
TEAM
Hanief Kader
C.E.O
Jan MacKay
C.I.O
Co-Founder Hanief
Kader, is an
entrepreneur with 25
years of management
and consulting
experience in various
businesses and sectors.
Hanief, as the CEO is
passionate about
leading the resources to
execute the vision of
Cubebucks.
The preferred
cryptocurrency
Co-Founder Jan has
experience in
development, FinTech
and internet
commerce, and over
20 years’ experience
in business
management, Jan
provides the
leadership and
technical background
for the CubeBucks
Blockchain.
BWB is a professional
services firm,
combining a top 100
legal practice that
tailor our service to
meet our clients’
needs with support
and specialist advice
to financial services
firms on the
regulatory issues
affecting them. We
cover all areas of
FCA and European
regulation that have
an impact in the UK
across the full range
of compliance topics.
At Kingston Smith, our
approach reflects our
experience and
demonstrates an
understanding of
what our clients
need. Our range of
audit and
accountancy
services offers clients
reassurance from a
technical
perspective,
enthusiasm and
responsive- ness.
Each audit is headed
up by a dedicated
partner.
Within the CubeBucks
team, everyone has
an important role.
Each individual’s
abilities, knowledge,
and experience are
pooled and used by
the team to
successfully complete
the project. It
therefore, makes
CubeBucks …
One Team. One
Heart. One Legacy
Legal
Auditors
Team
24
LEGAL GOVERNANCE AND AUDIT COMPLIANCE
25
DISCLOSURE
NATURE OF CUBEBUCKS
CubeBucks is a multidimensional blockchain: Holders of CubeBucks are enabled to
access the full functionality of the CubeBucks Platform when the development is
complete and qb coins are released to the market.
CubeBucks are non-refundable: CubeBucks is not obliged to provide Coins holders
with a refund for any reason, and CubeBucks holders will not receive money or
other compensation in lieu of a refund. Statements set out in the White Paper are
merely expressions CubeBucks’s objectives and desired work plan to achieve the
objectives, and no promises of future performance or price are or will be made in
respect to CubeBucks, other than the 80% value represented by the asset
allocation funds from the initial coin offer. Valuations according to market
conditions and group elected fund allocations will reduce or increase the
valuation of the assets underwriting the value of the qb coin.
CubeBucks provided on "as is" basis: CubeBucks is provided on "as is" basis.
CubeBucks and its representative directors, officers, advisors, employees,
shareholders, affiliates and licensors (hereafter referred to as MEMBERS) make no
representations or warranties of any kind, whether express, implied, statutory or
otherwise regarding CubeBucks, including any warranty that CubeBucks and the
CubeBucks Platform will be uninterrupted, error-free or free of harmful components,
secure or not otherwise lost or damaged. Except to the extent prohibited by
applicable law, CubeBucks and the MEMBERS disclaim all warranties, including any
implied warranties of merchantability, satisfactory quality, fitness for a particular
purpose, non-infringement, or quiet enjoyment, and any warranties arising out of
any course of dealings, usage or trade.
CubeBucks may have no value: CubeBucks may have no value and there is no
guarantee or representation of liquidity for CubeBucks. The CubeBucks is not and shall
not be responsible for or liable for the market value of the CubeBucks, the
transferability and/or liquidity of CubeBucks and/or the availability of any market for
CubeBucks through third parties or otherwise.
Lack of development of the market for CubeBucks: There are no warranties that
CubeBucks will be listed or made available for exchange for other cryptocurrencies
and/or fiat money. It shall be explicitly cautioned that if CubeBucks are available
on any exchange, such exchange, if any, may not be subject to regulatory
oversight and that CubeBucks does not give any warranties in relation to any
exchange services providers. Because there has been no prior public trading
market for CubeBucks, the coin Issuance may not result in an active or liquid market
for CubeBucks, and the price of CubeBucks may be volatile. CubeBucks holders
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may not be able to dispose of CubeBucks easily and where no secondary market
develops, a CubeBucks holder may not be able to liquidate at all.
Risks relating to highly speculative prices: The valuation of cryptocurrencies and
digital coins in secondary markets is usually not transparent, and highly speculative.
CubeBucks do hold ownership rights to underlying assets and, therefore, are
backed by these tangible assets. The value of CubeBucks in secondary markets, if
any, may fluctuate greatly within a short period of time. There is a high risk that
Purchasers may lose up to 20% of their contribution amount, and in the worst-case
scenario, CubeBucks could be rendered worth less than the value of assets held.
Force majeure: The coin Issuance and the performance of CubeBucks activities set
out in the White Paper development roadmap may be interrupted, suspended or
delayed due to force majeure circumstances. For the purposes of this White Paper,
force majeure shall mean extraordinary events and circumstances which could not
be prevented by CubeBucks and shall include: changes in market forces or the
technology, acts of nature, wars, armed conflicts, mass civil disorders, industrial
actions, epidemics, lockouts, slowdowns, prolonged shortage or other failures of
energy supplies or communication service, acts of municipal, state or federal
governmental agencies, other circumstances beyond CubeBucks’ control, which
were not in existence at the time of Coin Issuance.
GOVERNMENTAL DISCLOSURES
Risk of unfavourable regulatory action in one or more jurisdictions: The regulatory
status of cryptographic coins, digital assets, and blockchain technology is
undeveloped, varies significantly among jurisdictions and is subject to significant
uncertainty. It is possible that certain jurisdictions may adopt laws, regulations, policies
or rules directly or indirectly affecting the blockchain networks, or restricting the right
to acquire, own, hold, sell, convert, trade, or use CubeBucks. Developments in laws,
regulations, policies or rules may alter the nature of the operation of the blockchain
network upon which CubeBucks is dependent.
There can be no assurance that governmental authorities will not examine the
operations of CubeBucks or pursue enforcement actions against the company. All of
this may subject the company to judgments, settlements, fines or penalties, or cause
the company to restructure their operations and activities or to cease offering certain
products or services, all of which could harm the reputation or lead to higher
operational costs, which may, in turn, have a material adverse effect on CubeBucks
and/or the development of the platform.
Purchaser bears the responsibility for legal categorization: There is a risk that
CubeBucks might be considered a security in certain jurisdictions, or that they might
be considered to be a security in the future. The company does not provide any
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warranty or guarantee as to whether it will be a security in the jurisdiction of the
Purchaser. Each Purchaser will bear all consequences of CubeBucks being
considered a security in their respective jurisdiction and will be responsible to confirm
if the acquisition and/or disposal of CubeBucks is legal in its relevant jurisdiction, and
each Purchaser undertakes not to use CubeBucks in any jurisdiction where doing so
would be unlawful. If a Purchaser establishes that the purchase or use of CubeBucks
is not legal in its jurisdiction, it should not acquire CubeBucks and immediately stop
using or possessing CubeBucks.
Acquiring CubeBucks in exchange for cryptocurrencies will most likely continue to be
scrutinized by various regulatory bodies around the world, which may impact the
usage of CubeBucks. The legal ability of the company to provide or support
CubeBucks or the CubeBucks Platform in some jurisdictions may be eliminated by
future regulation or legal actions. In the event the company determines that the
purchase or usage of CubeBucks is illegal in a jurisdiction, the company may cease
operations in that jurisdiction, or adjust CubeBucks in a way to comply with applicable
law.
Purchaser bears responsibility for complying with transfer restrictions: CubeBucks
may be placed on third-party exchanges, giving future purchasers and users an
opportunity to openly buy CubeBucks. A user seeking to enter the CubeBucks
Platform following the Coin Issuance will have to buy CubeBucks on such
exchanges. Conversely, CubeBucks may be sold on such exchanges if the holder
of CubeBucks would like to exit the CubeBucks Platform ecosystem. Existing laws
on the circulation of securities in certain countries, such as the United States of
America and Singapore, may prohibit the sale of the CubeBucks to the residents
of those countries. When buying CubeBucks, Purchaser should be aware of the
restrictions on their subsequent sale.
GENERAL SECURITY RISKS
Risk of theft and hacking: Coin generation events and initial coin offerings are often
targeted by hackers and bad actors. Hackers may attempt to interfere with the
Purchaser's coin wallet used to store the private keys to CubeBucks, which is
accessible through applications that make use of the CubeBucks API (Purchaser's
Wallet), CubeBucks Smart Contract or the availability of CubeBucks in any number of
ways, including denial of service attacks, Sybil attacks, spoofing, smurfing, malware
attacks, or consensus-based attacks. Any such attack may result in theft or loss for coin
holders.
Failure to map a public key to Purchaser's Wallet: Failure of the Purchaser to map a
public key to such Purchaser's Wallet may result in third-parties being unable to
recognize buyer’s CubeBucks balance on the CubeBucks blockchain when and if
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they configure the initial balances of a new blockchain based upon the CubeBucks
Platform.
Risk of weaknesses or exploitable breakthroughs in the field of cryptography:
Advances in cryptography, or other technological advances such as the
development of quantum computers, could present risks to cryptocurrencies.
Internet transmission risks: There are risks associated with using CubeBucks like the
probable failure of hardware, software, and internet connections. CubeBucks will not
be responsible for any communication failures, disruptions, errors, distortions or delays
experienced when using the CubeBucks Platform, however, caused. Transactions in
cryptocurrencies and coins may be irreversible, and, accordingly, losses due to
fraudulent or accidental transactions may not be recoverable. Cryptocurrency
transactions are deemed to be made when recorded on a public ledger, which is not
necessarily the date or time when the transaction is initiated.
CUBEBUCKS PLATFORM DISCLOSURES
Risks associated with CubeBucks associated software and/or infrastructure:
CubeBucks is based on the Flex blockchain. As such, any malfunction, unintended
function or unexpected functioning of the protocol may cause CubeBucks and/ or
the CubeBucks Platform to malfunction or function in an unexpected or unintended
manner.
The Flex blockchain rests on open source software, and accordingly, there is the risk
that CubeBucks Smart Contract may contain intentional or unintentional bugs or
weaknesses which may negatively affect CubeBucks or result in the loss or theft of
CubeBucks or the loss of ability to access or control CubeBucks. In the event of such
a software bug or weakness, there may be no remedy and CubeBucks holders are
not guaranteed any remedy, refund or compensation.
Irreversible nature of blockchain transactions: Transactions involving CubeBucks that
have been verified, and recorded as a block on the blockchain, generally cannot be
undone. Even if the transaction turns out to have been in error, or due to theft of a
user's CubeBucks, the transaction is not reversible. Further, at this time, there is no
governmental, regulatory, investigative, or prosecutorial authority or mechanism
through which to bring an action or complaint regarding missing or stolen
cryptocurrencies and digital coins. Consequently, CubeBucks may be unable to
replace missing qb’s or seek reimbursement for any erroneous transfer or theft of
CubeBucks.
Amendments to protocol: The development team and administrators of the source
code for the Flex blockchain or the CubeBucks coin could propose amendments to
such network's protocols and software that, if accepted and authorized, or not
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accepted, by the network community, could adversely affect the supply, security,
value, or market share of CubeBucks.
CUBEBUCKS LTD DISCLOSURES
Dependence on management team: The ability of the CubeBucks Platform project
team which is responsible for maintaining the competitive position of the CubeBucks
Platform is dependent to a large degree on the services of a senior management
team. The loss or diminution in the services of members of such senior management
team or an inability to attract, retain and maintain additional senior management
personnel could have a material adverse effect on the CubeBucks Platform.
Competition for personnel with relevant expertise is intense due to the small number
of qualified individuals, and this competition may seriously affect the 's ability to retain
its existing senior management and attract additional qualified senior management
personnel, which could have a significant adverse impact on the Platform.
Risks related to reliance on third parties: Even if completed, the CubeBucks Platform
will rely, in whole or partly, on third-parties to adopt and implement it and to continue
to develop, supply, and otherwise support it. There is no assurance or guarantee that
those third-parties will complete their work, properly carry out their obligations, or
otherwise meet anyone’s needs, any of which might have a material adverse effect
on the CubeBucks Platform.
Insufficient interest in the CubeBucks Platform and CubeBucks: It is possible that
CubeBucks will not be used by a large number of individuals, businesses and
organizations and that there will be limited public interest in the creation and
development of its functionalities. Such a lack of interest could impact the
development of the platform.
CubeBucks Platform development risks: The development of the CubeBucks Platform
may be abandoned for a number of reasons, including lack of interest from the public,
lack of funding, lack of commercial success or prospects, or departure of key
personnel.
Changes to the CubeBucks Platform: The Platform is still under development and may
undergo significant changes over time. Although the company intend for the Platform
to have the features and specifications set forth in this White Paper, changes to such
features and specifications may be made for any number of reasons, any of which
may mean that the CubeBucks Platform does not meet the expectations of the
Purchaser.
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LEGAL GOVERNANCE
All banking regulations will be adhered to in order to retain good standing with
regulators.
These include:
Compliance to FINCEN (USA), FCA (UK) and other regulatory bodies will require
CubeBucks to comply with the provisions of The Bank Secrecy Act and its
implementing regulations requiring us to develop, implement, and maintain an
effective written anti-money laundering (“AML”) program that is reasonably designed
to prevent our system from being used to facilitate money laundering and the
financing of terrorist activities.
See 31 U.S.C. §§ 5318(a) (2) and 5318(h); 31 C.F.R. § 1022.210.
Under the Bank Secrecy Act, CubeBucks will be required to implement an AML
program that, at a minimum:
incorporates policies, procedures and internal controls designed to assure ongoing
compliance;
designates an individual responsible for assuring day to day compliance with the
program and Bank Secrecy Act requirements;
provides training for appropriate personnel including training in the detection of
suspicious transactions; and
Provides for an independent review to monitor and maintain an adequate program.
31 C.F.R. §§ 1022.210(d).
REF: Opinion and Warning issued by the UK FCI
https://www.fca.org.uk/news/statements/initial-coin-offerings
REF: Opinion and Warning issued by the European Central Bank:
https://www.eba.europa.eu/documents/10180/598344/EBA+Warning+on+Virtual+Cu
rrencies.pdf
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COMPLIANCE
Cube Bucks must report transactions that the cryptocurrency exchange “knows,
suspects, or has reason to suspect” are suspicious, if the transaction is conducted or
attempted by, at, or through the cryptocurrency, and the transaction involves or
aggregates to at least $2,000.00 in funds or other assets. 31 C.F.R. § 1022.320(a) (2) or
as defined in the relevant jurisdiction.
A transaction is “suspicious” if the transaction:
involves funds derived from illegal activity;
is intended or conducted in order to hide or disguise funds or assets derived from illegal
activity;
to disguise the ownership, nature, source, location, or control of funds or assets derived
from illegal activity;
is designed, whether through structuring or other means, to evade any requirement in
the Bank Secrecy Act or its implementing regulations;
Serves no business or apparent lawful purpose, and the company knows of no
reasonable explanation for the transaction after examining the available facts,
including the background and possible purpose of the transaction;
Involves use of cryptocurrency to facilitate criminal activity; or
Implement Know Your Client (KYC) policy and procedures that must be adhered to
for all new accounts being opened including the collection and storage of Identity,
proof of address and other relevant business information.
ICO purchases with blockchain currencies are excluded from the above restrictions,
provided the buying party effectively register their Know Your Client (KYC) and written
anti-money laundering AML documents before live trading currencies.